Section 1.

Section one hundred seventy-eight of Commonwealth Act Numbered Four hundred sixtysix, as amended, is hereby further amended to read as follows:
"Sec. 178. Payment of privilege taxes. A privilege tax must be paid before any business or
occupation hereinafter specified can be lawfully begun or pursued. The tax on business is payable
for every separate or distinct establishment or place where business subject to the tax is conducted;
and one line of business or occupation does not become exempt by being conducted with some
other business or occupation for which such tax has been paid.
"The tax on a business must be paid by the person, firm, or company conducting the same; the
occupation tax, by each individual engaged in a calling subject thereto."
Section 2. Section one hundred eighty of Commonwealth Act Numbered Four hundred sixty-six, as
amended, is hereby further amended to read as follows:
"Sec. 180. Time for payment of fixed taxes. All fixed taxes shall be due and payable on or before the
twentieth of January of each year. But any reason first beginning a business or occupation must pay
the tax before engaging therein."
Section 3. Section one hundred eighty-one of Commonwealth Act Numbered Four hundred sixty-six,
as amended, is hereby repealed.
Section 4. Section one hundred eighty-two of Commonwealth Act Numbered Four hundred sixty-six,
as amended, is hereby further amended to read as follows:
"Sec. 182. Fixed taxes (A) On business (1) Persons subject to percentage tax. Unless otherwise
provided, every person engaging in a business on which the percentage tax is imposed shall pay in
full a fixed annual tax of twenty pesos for each calendar year or fraction thereof in which such
person shall engage in said business.
"(2) Persons not subject to percentage tax. Every person who is not required to pay the
percentage tax prescribed in sections one hundred eighty-four, one hundred eighty-five and
one hundred eighty-six shall pay in full for each calendar year or fraction thereof in which
such person shall engage in business a fixed annual tax based upon his gross annual sales
during the preceding calendar years, as follows:
"Ten pesos, if the amount of the gross annual sales exceeds two thousand pesos but
does not exceed ten thousand pesos;
"Twenty pesos, if the amount of the gross annual sales exceeds ten thousand pesos
but does not exceed thirty thousand pesos;
"Thirty pesos, if the amount of the gross annual sales exceeds thirty thousand pesos
but does not exceed fifty thousand pesos;

"Fifty pesos, if the amount of the gross annual sales exceeds fifty thousand pesos
but does not exceed seventy-five thousand pesos;
"Seventy-five pesos, if the amount of the gross annual sales exceeds seventy-five
thousand pesos but does not exceed one hundred thousand pesos;
"One hundred pesos, if the amount of the gross annual sales exceeds one hundred
thousand pesos but does not exceed one hundred fifty thousand pesos;
"One hundred fifty pesos, if the amount of the gross annual sales exceeds one
hundred fifty thousand pesos but does not exceed three hundred thousand pesos;
"Three hundred pesos, if the amount of the gross annual sales exceeds three
hundred thousand pesos but does not exceed five hundred thousand pesos; and
"Five hundred pesos, if the amount of the gross annual sales exceeds five hundred
thousand pesos:Provided, That if a merchant is engaged in two or more businesses,
one or more of which is subject to, and the others exempt from, the percentage tax,
he shall pay the graduated fixed annual tax provided above, based on the individual
sales of his business not subject to the percentage tax under this Title: Provided,
however, That the initial graduated fixed annual tax to be paid by the person first
engaging in business subject to said tax shall be ten pesos.
"This tax shall be payable before the person subject to the same begins to engage in
the business, and thereafter within the regulation period in the month of January
during which the other fixed privilege taxes may be paid without penalty.
"(3) Other fixed taxes. The following fixed taxes shall be collected as follows, the amount
stated being for the whole year, when not otherwise specified:
"(a) Brewers, one thousand pesos.
"(b) Distillers of spirits, one hundred pesos, if the annual production does not exceed
fifty thousand gauge liters; two hundred pesos, if the annual production exceeds fifty
thousand gauge liters; but does not exceed one hundred thousand gauge liters; four
hundred pesos, if the annual production exceeds one hundred thousand gauge liters
but does not exceed two hundred and fifty thousand gauge liters; and six hundred
pesos if the annual production exceeds two hundred and fifty thousand gauge liters.
"(c) Rectifiers of distilled spirit, compounders, and repackers of wines or distilled
spirits, four hundred and fifty pesos.
"(d) Wholesale peddlers of distilled, manufactured, or fermented liquor, one hundred
pesos.
"(e) Wholesale peddlers of manufactured tobacco, fifty pesos.

"(f) Retail peddlers of distilled, manufactured, or fermented liquor, one hundred and
fifty pesos.
"(g) Retail peddlers of manufactured tobacco, sixteen pesos.
"(h) Wholesale liquor dealers
1. In the City of Manila, six hundred pesos;
2. In chartered cities other than Manila, four hundred pesos;
3. In any other place, one hundred and fifty pesos.
"(i) Wholesale dealers infermented liquors, except basi, tuba and tapuy, one hundred
and fifty pesos.
"(j) Retail liquor dealers, one hundred pesos.
"(k) Retail vino dealers, twenty pesos.
"(l) Retail dealers in fermented liquors, fifty pesos.
"(m) Wholesale leaf tobacco dealers, one hundred pesos.
"(n) Retail leaf tobacco dealers, thirty pesos.
"(o) Manufacturers of tobacco and manufacturers of cigars and cigarettes
1. In the City of Manila, four hundred pesos;
2. In any other place, one hundred pesos.
"(p) Wholesale tobacco dealers, sixty pesos; retail tobacco dealers, sixteen pesos.
"(q) Manufacturers or importers of playing cards, two hundred pesos.
"(r) Manufacturers, producers, or importers of soft drinks or mineral waters, one
hundred pesos.
"(s) Stockbrokers, dealers in securities, real estate brokers, real estate dealers,
commercial brokers, customs brokers and immigration brokers, one hundred and fifty
pesos: Provided, however, That in the case of real estate dealers, the annual fixed
tax to be collected shall be as follows:
"One hundred and fifty pesos, if the annual income from buying, selling,
exchanging, leasing, or renting property (whether on their own account as

principals or as owners of rental property or properties) is three thousand

pesos or more but not exceeding ten thousand pesos;
"Three hundred pesos, if such annual income exceeds ten thousand pesos
but does not exceed thirty thousand pesos; and
"Five hundred pesos, if such annual income exceeds thirty thousand pesos.
"(t) Owners of race tracks for each day on which races are run on any track, five
hundred pesos.
"(u) Lending investors
1. In chartered cities and first-class municipalities, three hundred pesos;
2. In second and third-class municipalities, one hundred and fifty pesos;
3. In fourth and fifth-class municipalities and municipal districts, seventy-five
pesos: Provided, That lending investors who do business as such in more
than one province shall pay a tax of three hundred pesos.
"(v) Cinematographic film owners, lessors or distributors, two hundred pesos.
"(B) On occupation. Taxes on occupation shall be collected as follows, the amount stated being the
sum due for the whole year:
"(1) Lawyers, medical practitioners, architects, interior decorators, certified public
accountants, civil, electrical, chemical, mechanical or mining engineers, insurance agents
and subagents, veterinarians, dental surgeons, opticians, commercial aviators, professional
appraisers or connoisseurs of tobacco and other domestic or foreign products, licensed ship
masters and marine chief engineers, seventy-five pesos.
"The term "mechanical engineers", as used herein, means professional mechanical
engineers as defined in Commonwealth Act Numbered Two hundred and ninety-four.
"(2) Land surveyors, chief mates, marine second engineers, pharmacists, registered nurses,
chiropodists, tattooers, masseurs, pelotaris, jockeys, professional actors or actresses, stage
performers and hostesses, fifty pesos.
"Every professional legally authorized to practice his profession, who has paid the
corresponding annual privilege tax on profession for which he has been duly qualified under
the law, in all parts of the Philippines without being subject to any other tax, charge, license
or fee for the practice of such profession: Provided, however, That they have paid to the
office concerned the registration fees required by their respective professions.
"(C) Exceptions. The following shall be exempt from the tax imposed in this section:

"(1) Persons whose gross annual sales do not exceed two thousand pesos.
"(2) All persons engaged in public market places exclusively in the sale at retail of domestic
meat, fruits, vegetables, game, poultry, fish, and other similar domestic food products.
"(3) Peddlers and sellers at fixed stands and other similar selling places engaged exclusively
in the sale at retail of domestic meat, fruits, vegetables, game, poultry, fish, and similar
domestic food products, whose total stock in trade on any one day does not reach a retail
value of one hundred pesos.
"(4) Producers of commodities of all classes working in their own homes, consisting of
parents and children living as one family, when the value of each day's production by each
person capable of working is not in excess of five pesos.
"(5) Owners of animal drawn two-wheeled vehicles.
"(6) Owners of bancas.
"(7) Persons employed in any branch of the service of the Government of the Philippines
whose entire professional services are devoted exclusively thereto or are applied under its
discretion, or persons devoting their entire professional services to any religious,
educational, or charitable institution, or hospital, sanitarium, or to any similar establishment,
not conducted for private gain, in respect to the tax imposed by paragraph (B) of this
section."
Section 5. Section one hundred eighty-three of Commonwealth Act Numbered Four hundred sixtysix, as amended, is hereby further amended to read as follows:
"Sec. 183. Payment of percentage taxes. (a) In general. It shall be the duty of every person
conducting a business on which a percentage tax is imposed under this Title, to make a true and
complete return of the amount of his, her or its gross monthly sales, receipts, or earnings, or gross
value of output actually removed from the factory or mill warehouse and within ten days after the end
of each month, pay the tax due thereon:Provided, That any person retiring from a business subject
to the percentage tax shall notify the nearest internal revenue officer thereof, file his return or
declaration, and pay the tax due thereon within ten days after closing his business.
"If the percentage tax on any business is not paid within the time prescribed above, the
amount of the tax shall be increased by twenty-five per centum, the increment to be a part of
the tax.
"In case of willful neglect to file the return within the period prescribed herein, or in case a
false or fraudulent return is willfully made, there shall be added to the tax or to the deficiency
tax, in case any payment has been made on the basis of such return before the discovery of
the falsity or fraud, a surcharge of fifty per centum of its amount. The amount so added to
any tax shall be collected at the same time and in the same manner and as part of the tax

unless the tax has been paid before the discovery of the falsity or fraud, in which case the
amount so added shall be collected in the same manner as the tax.
"(b) Sales tax on imported articles. When the articles are imported, the percentage taxes
established in sections one hundred eighty-four, one hundred eighty-five, and one hundred
eighty-six of this Code shall be paid in advance by the importer, in accordance with
regulations promulgated by the Secretary of Finance and prior to the release of such articles
from customs' custody, based on the import invoice value thereof, certified to as correct by
the Philippine Consul at the port of origin if there is any, including freight, postage, insurance,
commission, customs duty, and all similar charges, plus one hundred per centum of such
total value in the case of articles enumerated in section one hundred and eighty-four; fifty per
centum of such total value in case of articles enumerated in section one hundred and eightyfive; and twenty five per centum in the case of articles enumerated in section one hundred
and eighty-six. The tax imposed in this section shall not apply to articles to be used by the
importer himself in the manufacture or preparation of articles subject to specific tax or those
for consignment abroad and are to form part thereof.
"In the case of tax-free articles brought or imported into the Philippines by persons, entities
or agencies exempt from tax which are subsequently sold, transferred, or exchanged in the
Philippines to non-exempt private persons or entities, the purchasers shall be considered the
importers thereof. The tax due on such articles shall constitute a lien on the article itself
superior to all other charges of liens, irrespective of the possessor thereof."
Section 6. Section one hundred eighty-four of Commonwealth Act Numbered Four hundred sixtysix, as amended, is hereby further amended to read as follows:
"Sec. 184. Percentage tax on sales of jewelry, automobiles, toilet preparations, and others. There
shall be levied, assessed, and collected once only on every original sale, barter, exchange, or similar
transaction for nominal or valuable considerations intended to transfer ownership of, or title to, the
articles herein below enumerated a tax equivalent to fifty per centum of the gross value in money of
the articles so sold, bartered, exchanged, or transferred, such tax to be paid by the manufacturer or
producer: Provided, That where the articles enumerated hereinbelow are manufactured out of
materials subject to tax under this section, the total cost of such materials, as duly established, shall
be deductible from the gross selling price or gross value in money of such manufactured articles:
"(a) Automobile chassis and bodies, the selling price of which does not exceed seven
thousand pesos:Provided, That where the selling price of an automobile exceeds seven
thousand pesos but does not exceed ten thousand pesos the same shall be taxed at the rate
of seventy-five per centum of such selling price: And provided, further, That where the selling
price of an automobile exceeds ten thousand pesos the same shall be taxed at the rate of
one hundred per centum of such ceiling price. A sale of automobile shall, for the purpose of
this section, be considered to be a sale of the chassis and of the body together with parts
and accessories with which the same are usually equipped. Provided, however, That parts
and accessories of automobiles imported as replacements or as completely knocked down
part for the assembly of automobiles shall be subject to tax under section one hundred and
eighty-six: And provided, further, That the total cost of such materials or parts on which tax

has already been paid under section one hundred and eighty-six, as duly established, shall
be deductible from the gross selling price or gross value in money of the assembled or
manufactured articles. The term "automobile" as used herein shall not include motor vehicles
classified as trucks.
"(b) All articles commonly or commercially known as jewelry, whether real or imitation; pearls,
precious and semi-precious stones, and imitations thereof; articles made of, or ornamented,
mounted or fitted with, precious metals or imitations thereof or ivory (not including surgical
instruments, silver-plated wares, frames or mountings for spectacles or eyeglasses and
dental gold or gold alloys and other precious metals used in filling, mounting or fitting of the
teeth); opera glasses, and lorgnettes. The term "precious metals" shall include platinum,
gold, silver, and other metals of similar or greater value. The term "imitations thereof" shall
include platings and alloys of such metals.
"(c) Perfumes, essences, extracts, toilet waters, cosmetics, petroleum jellies, hair oils,
pomades, hair dressings, hair restoratives, hair dyes, aromatic cachous, toilet powders, and
any similar substance, article, or preparations, by whatsoever name known or distinguished;
and any of the above which are used or applied or intended to be used or applied for toilet
purposes; except tooth and mouth washes, dentrifices, tooth paste; and talcum or medicated
toilet powders.